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Item 3B2Reference Page 3 Page 3 Page 4 Page 4 Page 5 MONTHLY FINANCIAL REPORT December 2021 = Negative Variance of > 4% compared to seasonal trends. Positive Negative PERFORMANCE AT A GLANCE Year to Date 3 year Trend Positive PERFORMANCE INDICATORS Positive Warning Permit Revenues Positive Positive Departmental Expenditures Summary Positive = Negative variance of 1-4% compared to seasonal trends = Positive variance or negative variance <1% compared to seasonal trends. GENERAL FUND PositiveGeneral Fund Exp. Vs. Rev. Sales Tax Revenue (2 months prior activity) Property Tax Revenue Positive Positive Positive Positive City of Southlake Monthly Financial Report 1 1/13/2022 National GDP: Housing Starts: Housing starts in November were at a seasonally adjusted rate of 1,173,000, which is 11.3% above the revised previous month figure of 1,054,000. 11.3% UNEMPLOYMENT RATES 3.9% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for November 2021 (preliminary) decreased to 3.9% when compared to 4.2% in October 2021. 3.9% State-wide:5.2% The Texas Unemployment rate for November 2021 (preliminary) decreased slightly to 5.2% from 5.4% in October 2021. DFW Area: ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY2.3% GDP is defined as the output of goods and services produced by labor and property located in the United States, The Bureau of Labor and Economic Analysis reported that the estimated GDP for the 3rd quarter of 2021 increased at a rate of 2.3%. In the 2nd quarter of 2021, GDP increased at a rate of 6.7%. The National Unemployment rate for December 2021 decreased to 3.9% when compared to 4.2% in November 2021. National: 5 YEAR TREND OF NEW CONSTRUCTION PERMIT VALUES $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2018*2019*2020*2021*2022* New Construction permit values *October -December City of Southlake Monthly Financial Report 2 1/13/2022 GENERAL FUND FY 2022 REVENUE FY 2022 EXPENDITURE VARIANCE Oct 3,333,411$ 2,430,309$ 903,102$ Nov 2,540,299$ 3,030,028$ (489,729)$ Dec 8,053,296$ 4,373,754$ 3,679,542$ Jan -$ -$ -$ Feb -$ -$ -$ Mar -$ -$ -$ Apr -$ -$ -$ May -$ -$ -$ Jun -$ -$ -$ Jul -$ -$ -$ Aug -$ -$ -$ Sep -$ -$ -$ Tot 13,927,006$ 9,834,091$ 4,092,915$ POSITIVE FY 2022 FY 2021 FY 2020 Oct 1,613,415$ 1,299,576$ 1,278,635$ Nov 1,652,674$ 1,084,677$ 1,309,584$ Dec -$ 1,926,407$ 1,993,686$ Jan -$ 1,256,119$ 1,360,873$ Feb -$ 978,395$ 1,011,429$ Mar -$ 1,727,925$ 1,162,936$ Apr -$ 1,470,896$ 1,038,287$ May -$ 1,262,973$ 1,153,263$ Jun -$ 2,586,036$ 1,375,636$ Jul -$ 1,449,136$ 1,190,064$ Aug -$ 1,427,525$ 1,233,673$ Sep -$ 1,687,605$ 1,416,226$ Tot 3,266,089$ 18,157,270$ 15,524,291$ GENERAL FUND REVENUE VS EXPENDITURES 2022 OVERALL FUND PERFORMANCE: REVENUE ANALYSIS GENERAL FUND SALES TAX 2022-2020 COMPARISON CHART OUTLOOK: CHART OUTLOOK: The outlook for the year is positive as overall revenues and expenditures are on target with budget. The revenues are higher than expenditures by approximately $4.1M. Year to date sales tax collections are trending above FY 2021 (37.0%)and FY 2020 (26.2%)collections.November sales were 52%and 21%above November collections for FY 2021 and FY 2020,respectively. November collections included an audit adjustment which represented 12%of collections for the month.Year to date collections are above budget for the year therefore the outlook is considered positive.Staff will continue to closely monitor collections. POSITIVE $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY 2022 FY 2021 FY 2020 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2022 REVENUE FY 2022 EXPENDITURE 2021 EXPEND. City of Southlake Monthly Financial Report 3 1/13/2022 GENERAL FUND FY 2022 FY 2021 FY 2020 Oct 653,703$ 778,578$ 790,236$ Nov 2,017,203$ 1,582,957$ 1,426,054$ Dec 6,068,454$ 6,036,699$ 9,161,119$ Jan -$ 13,167,125$ 10,088,389$ Feb -$ 4,445,041$ 4,237,797$ Mar -$ 411,151$ 420,930$ Apr -$ 259,058$ 55,958$ May -$ 152,945$ 105,567$ Jun -$ 389,839$ 448,670$ Jul *-$ (1,365,991)$ (1,457,677)$ Aug -$ 52,655$ 52,000$ Sep -$ 190,848$ 28,446$ Tot 8,739,360$ 26,100,905$ 25,357,489$ POSITIVE FY 2022 FY 2021 FY 2020 Oct 214,445$ 50,043$ 134,067$ Nov 185,109$ 69,734$ 238,528$ Dec 94,663$ 102,515$ 135,168$ Jan -$ 88,737$ 204,931$ Feb -$ 76,270$ 212,195$ Mar -$ 150,142$ 126,842$ Apr -$ 124,870$ 188,968$ May -$ 136,364$ 128,791$ Jun -$ 158,786$ 148,103$ Jul -$ 170,985$ 152,920$ Aug -$ 217,599$ 69,101$ Sep -$ 221,982$ 246,547$ Tot 494,217$ 1,568,027$ 1,986,161$ PERMIT REVENUE 2022-2020 COMPARISON CHART OUTLOOK: REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND CHART OUTLOOK: 2022 YTD property tax collections ($8,736,360)are approximately 4.06%higher than 2021 YTD ($8,398,234)and 23.19%less and 2020 YTD ($11,377,409)as of December.As indicated on the chart,the majority of the property tax revenue is collected in the first few months of the fiscal year. YTD collections are trending slightly below budget. * Net transfer of TIF revenues to TIF fund The value of new construction permits ($31.7M+)issued for FY 2022 YTD is approximately 10.4%and 15.4%higher when compared to FY 2021 and FY 2020,respectively.FY 2022 collections are 122.3%higher and 2.7% lower when compared to FY 2021 and 2020, respectively. The permit revenue year to date is trending above budget therefore the outlook is considered positive. POSITIVE $(4,000,000) $(2,000,000) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul *Aug FY 2022 FY 2021 FY 2020 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2022 FY 2021 FY 2020 City of Southlake Monthly Financial Report 4 1/13/2022 FY 2022 ACTUAL YTD (DECEMBER) FY 2021 ACTUAL YTD (DECEMBER) FY 2022 BUDGET YTD (DECEMBER)FY 2021 % SPENT 242,831$ 184,946$ 278,439$ 87.21% 172,205$ 150,401$ 194,555$ 88.51% 1,267,970$ 1,192,384$ 1,864,539$ 68.00% 129,188$ 126,003$ 175,984$ 73.41% 4,199,768$ 4,133,727$ 5,225,583$ 80.37% 64,897$ 36,491$ 75,983$ 85.41% 659,551$ 487,188$ 786,568$ 83.85% 183,037$ 173,567$ 239,515$ 76.42% 757,528$ 623,075$ 911,382$ 83.12% 503,012$ 511,613$ 652,360$ 77.11% 881,398$ 913,897$ 1,277,077$ 69.02% 772,710$ 745,653$ 937,303$ 82.44% 9,834,095$ 9,278,945$ 12,619,288$ 77.93% EXPENDITURE ANALYSIS POSITIVE (134,453)$ 46,796$ 1,025,815$ 11,086$ 127,017$ 56,478$ 153,854$ CSO DPS ED FIN HR IT DEPARTMENTAL EXPENDITURES SUMMARY (21,804)$ 22,350$ COMM BUDGET VARIANCE 35,608$ 596,569$ 8,601$ 32,499$ (27,057)$ (555,150)$ As indicated above,2022 expenditures are above 2021 expenditures for the same period with a increase of 5.98%primarily due to DPS expenditures eligible for CARES/grant funding in FY 2021.The outlook is positive expenditures are below budgeted expenditures for the fiscal year. FY 2021/2022 YTD VARIANCE (57,885)$ (75,586)$ (3,185)$ (66,041)$ (28,406)$ (172,363)$ SS Totals PW CMO CS 2,785,193$ CHART OUTLOOK: 164,593$ 395,679$ (9,470)$ 149,348$ PDS $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS FY 2022 ACTUAL YTD (DECEMBER)FY 2021 ACTUAL YTD (DECEMBER)FY 2022 BUDGET YTD (DECEMBER) City of Southlake Monthly Financial Report 5 1/13/2022